R2 Studios has been working on technology that distributes and displays digital media on TVs

In an attempt to broaden its Xbox business, Microsoft has acquired a Silicon Valley startup that will bring new digital patents to the table.

Microsoft got its hands on id8 Group R2 Studios Inc., better known as R2 Studios, which launched in 2011 by entrepreneur Blake Krikorian. The startup specializes in entertainment and automation technology, and recently released an app that allows your smartphone to control your home's security system and thermostat.

R2 Studios has been working on technology that distributes and displays digital media on TVs, which can be beneficial to Microsoft's Xbox business. Xbox has been slowly working its way up from just being a video game console to also providing content from services like Netflix and Comcast.

According to The Wall Street Journal, R2 Studios was also talking with Apple and Google for possible deals.

The amount that Microsoft paid for R2 Studios is unknown.

Last month, Xbox Live subscribers lost access to the Cloud Saved Games feature, which allows gamers to store saved games online and pick them up later on a different console if they'd like. The outage lasted anywhere from a couple of hours to a couple of days. Microsoft compensated for the outage with a free month of Xbox Live to all who were affected.